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The Chet Holmes Buyers Pyramid Explained

By Kamron Nelson April 13, 2022

What’s the best way to advertise a product? You might think that showing off the product and informing the public where they can buy it is enough, but that’s not always the case.

In fact, according to the Buyers Pyramid by Chet Holmes, only about three percent of the population pay attention to such advertisements. So how do you improve your advertising and increase sales?

The Buyers Pyramid might just have the solution you’re looking for. By examining it and why people don’t want to purchase products, you can persuade more people to buy your products.

Read on to learn about the Buyers Pyramid and how it can help your business.

What is the Chet Holmes Buyers Pyramid?

Chet Holmes’s Buyers Pyramid is a tool describing who businesses are targeting with their advertisements. However, it focuses on quantity rather than demographics. The pyramid divides the population into five categories based on their willingness to buy a product.

People in the market for smartphones right now are a good example to start with.

Buying Now

Starting at the top of the pyramid are those who are currently looking to purchase a new product such as a smartphone. This is the smallest section because it holds the smallest amount of people. Chet Holmes suggests that all businesses can assume that only three percent of the population are interested in buying products such as smartphones at any given time.

The people in this category are constantly shifting. People purchase new smartphones every day, and the next day a new group of people decides they need a new one too.

The good news is that there is a steady flow of people in and out of this category. The bad news is that this is the group that is paying the most attention to advertisements.

They’re looking for advantages and disadvantages of every available smartphone, so they watch when a commercial comes on the television. They’re actively seeking out which phone and service provider are the best choice for them.

In other words, only three percent of the population is paying close attention to any advertisements a business releases.

Open to Purchasing

Below them are those who aren’t actively seeking a new smartphone but are open to buying one if a good opportunity presents itself. These people can often be persuaded with good deals and benefits with their purchase. According to the pyramid, this category contains between six and seven percent of the population at any given time.

Some of these people will choose to make a purchase. Others will decide they either don’t need to make the purchase or that it isn’t the right time to do so yet.

These people are also paying attention to the advertisements businesses release. The difference is that they don’t pay as close attention, because they don’t feel a sense of urgency to make the purchase. The good news is that the right advertisement can persuade them to move into the “buying now” category.

Not Thinking About It

Below that group is people who aren’t thinking about buying a new smartphone at all. They’re content where they are and don’t see the need for buying products. According to the pyramid, this is about thirty percent of the population.

The good news is that this will eventually change. Their smartphones become outdated or damaged.

But in the meantime, these people aren’t paying attention to advertisements. They don’t care to look at new smartphones because they haven’t considered that a new one might benefit them yet.

Occasionally, one might catch their eye and convince someone to move from this category into the “open to buying” or “buying now” categories. However, most remain in this category until time creates a need for them to buy.

In other words, public advertisements aren’t affecting this group very much at all. If a business wants to sell products to this group, they need to rethink their strategy.

Think They aren’t Interested

The next group is people who think that they aren’t interested. This is another thirty percent of the population.

Unlike those that aren’t thinking about it, these people are convinced that they don’t need a new product right now. They don’t pay any attention to advertisements because they’re happy with what they have. It’ll be much harder to convince these people that they should purchase a new smartphone.

The good news is that many of these people may be interested in new products and the benefits they offer despite not wanting to purchase. They often move from this category to the “buying now” category if they can see the immediate benefits of purchasing the product.

Once again, however, businesses need to redirect their strategy if they want this group to purchase their products sooner rather than later.

Know They aren’t Interested

Finally, the last thirty percent of the population is at the bottom of the pyramid. This section consists of those who know they aren’t interested in making a purchase right now.

They might have recently purchased a new smartphone, and therefore aren’t interested in the new one released a week later. Others may not feel like they need to hurry to get the newest one when their current one works fine.

They won’t pay attention to advertisements at all because they aren’t interested in new products. It doesn’t matter what fancy improvements to the technology they’re being offered.

If they already purchased the newest smartphone, then there’s no persuading them to purchase another one so soon. They may feel they don’t need certain services from other industries like a chiropractor. The good news is that they’re already a customer that may persuade their friends to get one too.

Others simply won’t be willing to listen to arguments for why they should purchase a new smartphone.

Use the Buyer’s Pyramid by Chet Holmes to Create Your Advertisements Today

The Chet Holmes Buyers Pyramid is a fantastic guide to increasing your business sales right now. By adjusting your advertising strategy, you can move more people into the “buying right now” category much faster.

Furthermore, a great place to start is with your business’s website. Here at Fishhook Marketing, we specialize in helping your website generate more sales. We’ll design a website for you that is easy to use, looks professional, and earns you more money.